Australia’s HMC Capital launches $1.79 billion IPO for DigiCo REIT

(Reuters) – Australia’s HMC Capital on Thursday unveiled plans to create DigiCo REIT, a new ASX-listed digital infrastructure real estate investment trust, in a A$2.75 billion ($1.79 billion) underwritten initial public offering.

The IPO has been expanded by A$100 million, following strong interest from both institutional cornerstone and retail investors, the company said.

DigiCo REIT will manage A$4.3 billion worth of data center assets across the U.S. and Australia, with HMC owning about a 18% stake worth A$500 million in DigiCo REIT.

Following the ASX listing of DigiCo REIT, HMC’s assets under management are projected to grow by 73% in 2024, reaching about A$17.5 billion.

The IPO is expected to boost HMC’s recurring funds management revenue and generate significant transaction-related income in fiscal 2025, HMC said in a statement.

($1 = 1.5378 Australian dollars)